Tips and tools to help you prepare your taxes
February 25, 2014
As you get ready to prepare your 2013 tax return, here are a few things to keep in mind.
You may not receive Form 1099-DIV
Form 1099-DIV is used to report dividends, capital gains distributions, and foreign taxes paid for your taxable investments, whether they're mutual fund shares or brokerage holdings. However, if your 2013 dividends or capital gains distributions for a given account total less than $10, you won't receive Form 1099-DIV. This is particularly likely to occur for money market funds, as Federal Reserve policy has kept their yields close to zero in recent years.
In addition, certain types of accounts don't receive Form 1099-DIV regardless of the distributions paid. Go to vanguard.com/taxcenter to learn more about account types that don't issue a 1099-DIV.
You're required to report all distributions in a taxable account to the IRS, even if you didn't receive a Form 1099-DIV. If you do not receive one, you can refer to your year-end account statement to check your 2013 dividend and capital gains distributions.
Save time and money with TurboTax®
Vanguard has again teamed with TurboTax to help our investors prepare and file their taxes.
Most Vanguard clients will receive discounts of up to $20 off the list price on TurboTax tax-filing software. Clients of Flagship Services® and Asset Management ServicesTM will receive complimentary access to TurboTax Deluxe.
In addition to importing your mutual fund and brokerage tax information directly into your tax return, TurboTax will:
- Ask simple questions. The program prompts you with easy questions and automatically fills in your information in the correct places.
- Double-check as you go. TurboTax checks and rechecks your return, and its calculations are guaranteed to be accurate.
- Provide answers. If you have questions, TurboTax can help.
For more information, visit vanguard.com/turbotax. (Please note: To qualify for the Vanguard discount, you must be registered with our website and must access TurboTax from this page.)
Open or contribute to an IRA
You have until April 15, 2014, to make an IRA contribution for the 2013 tax year. You can contribute up to $5,500 ($6,500 if you're age 50 or older) to a traditional or Roth IRA, subject to certain qualifications. Both types of IRAs have distinct tax advantages. To learn more, go to vanguard.com/ira or consult a tax advisor.
Still have questions?
Vanguard's website offers a variety of resources to help make your tax preparation easier:
- vanguard.com/taxcenter to find answers to frequently asked questions.
- Log on to your account to review personal tax information in the secure Tax Center area.
- Go to vanguard.com/costbasis to help you understand how cost basis legislation changes may affect you.
- All investing is subject to risk, including the possible loss of the money you invest.
- The IRS and most state tax authorities permit online filing of tax returns. Florida, Tennessee, and New Hampshire do not. Check with your state tax authority for more information. The IRS and state tax authorities send an electronic acknowledgement for each return successfully e-filed; Intuit will provide this to you once your return is received. We recommend that you consult a financial or tax advisor about your individual situation.
- TurboTax and TurboTax Online are trademarks and service marks of Intuit Inc., registered in the United States and other countries.